On April 14, 2023, the National Highway Traffic Safety Administration (NHTSA) took a major step in formalizing its Whistleblower Program by issuing a notice of proposed rulemaking (NPRM) to formally promulgate regulations intended to create incentives for whistleblowers to provide safety information to NHTSA as well as provide protections for these whistleblowers. NHTSA is proposing these provisions under authority granted to the Agency through the Motor Vehicle Safety Whistleblower Act (Whistleblower Act), which is part of the Fixing America’s Surface Transportation (FAST) Act that President Obama signed into law in December 2015.
The Whistleblower Act permits NHTSA to pay bounties to whistleblowers who share original information regarding potential violations of the National Traffic and Motor Vehicle Safety Act (Safety Act) and regulations promulgated under the Safety Act. In effect, the FAST Act sought to incentivize individuals to share information with NHTSA related to any motor vehicle defect, noncompliance, or alleged violation of a reporting requirement that is likely to cause unreasonable risk of death or serious physical injury. Whistleblowers who share original information related to violations of NHTSA’s regulations could receive an award between 10% and 30% of any civil penalties over $1 million paid by the violating entity.
To qualify for the bounty, the whistleblower must provide original information – information that is derived from independent knowledge...
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